MINING CORPORATIONS – BRAZIL

Vale fights to meet iron ore guidance

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 4-Jun-20

Macquarie Wealth Management’s analysis of port data shows that BHP, Rio Tinto and Fortescue Metals Group are on track to achieve their iron ore export guidance for 2020. However, Macquarie believes that Brazilian rival Vale will struggle to meet its full-year guidance of 310 million to 330 million tonnes, despite ramping up shipments in the last two weeks. Macquarie estimates that Vale will need to export more than six million tonnes per week to achieve the lower end of its guidance; its weekly shipments have averaged 4.5 million tonnes so far in the June quarter.

CORPORATES
BHP GROUP LIMITED – ASX BHP,RIO TINTO LIMITED – ASX RIO,FORTESCUE METALS GROUP LIMITED – ASX FMG,VALE SA,MACQUARIE WEALTH MANAGEMENT

Vale setback a boon for Australian iron ore producers

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 20-Mar-20

Vale’s iron ore distribution hub in Malaysia will be disrupted by the government’s efforts to contain the coronavirus. Vale expects work at the hub to be suspended until the end of March, which could reduce its iron ore shipments for the first quarter by an additional one per cent. The Brazilian miner had previously advised that its export volumes would be seven per cent lower than previously. The pandemic has affected mining operations worldwide, although it has yet to have any impact on Australia’s iron ore sector.

CORPORATES
VALE SA

Vale confirms drop in iron ore exports

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 13-Feb-20

Brazilian iron ore miner Vale now expects output of 63-68 million tonnes in the March quarter, compared with previous guidance of 68-73 million tonnes. The production downgrade has been attributed to factors such as heavy rains, while Vale says its revised forecast does not take into account any impact of the coronavirus. Vale’s problems may bolster demand for Australian iron ore; the sector’s exports volumes are forecast to reach a record $84bn in 2019-20, despite the recent disruption caused by Tropical Cyclone Damien.

CORPORATES
VALE SA, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD

Brazil struggles may prolong iron ore boom

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Original article by Peter Ker
The Australian Financial Review – Page: 21 : 24-Jan-20

Brazilian miner Vale will release a market update on 11 February, but several sources have suggested that its iron ore exports so far in January are significantly lower than previously. Vale had flagged lower shipments in the first quarter of 2020, although it has advised that export volumes would rise later in the year. Nevertheless, lower exports from Brazil could see the price of iron ore remain high in the near-term, which would boost the earnings of Australian producers and federal government revenue.

CORPORATES
VALE SA, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Slow restart at Samarco will be small beer for Australian miners

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Original article by Peter Ker
The Australian Financial Review – Page: 19 : 29-Oct-19

Lachlan Shaw of National Australia Bank says the resumption of production at the Samarco joint venture in Brazil is unlikely to have much impact on Australia’s iron ore exporters. BHP and Vale has been granted environmental approval to resume production in late 2020. Shaw notes that based on the initial production rate that has been flagged, it would take about 10 years for production at Samarco to return to the levels prior to the tailings dam disaster in November 2015.

CORPORATES
BHP GROUP LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO

BHP, Vale to resume at Samarco

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Original article by Brad Thompson
The Australian Financial Review – Page: 20 : 28-Oct-19

BHP and Vale are hopeful of resuming production at their Samarco joint venture’s Germano iron ore mine in Brazil by late 2020. This follows the granting of a Corrective Operating Licence for the mine by Minas Gerais state’s environmental regulator. The mine has been closed since a tailings dam collapse in November 2015. BHP has indicated that restarting Germano is dependent on Samarco receiving funding for a new filtration plant at the mine.

CORPORATES
BHP GROUP LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA

Rio Tinto to take iron ore exports crown as Vale struggles

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 26 : 24-Jul-19

Rio Tinto and Brazilian rival Vale are both expected to record lower iron ore shipments in 2019 than the previous calendar year. New data shows that Vale exported 138.5 million tonnes of iron ore during the first half of 2019, a decline of 18 per cent year-on-year. Vale expects its shipments to rise in the second half, with full-year exports to be around the midpoint of its guidance of between 307 million and 332 million tonnes. This suggests full-year exports of around 319.5 million tonnes. Rio Tinto in turn expects to ship between 320 million and 330 million tonnes of iron ore for the year.

CORPORATES
RIO TINTO LIMITED – ASX RIO, VALE SA, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, KUMBA RESOURCES LIMITED

Vale’s latest legal blow boosts iron ore stocks

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 : 8-May-19

Brazilian miner Vale has advised that its sales of iron ore and pellets in 2019 will be at the lower end of its previous forecast of between 307 and 332 million tonnes. The revised guidance follows a court’s move to reverse its decision to allow Vale to resume production at mines that were affected by a tailings dam collapse in January. Shares in Australian iron ore miners rallied on 7 May, and Peter O’Connor of Shaw & Partners expects further volatility in the price of the steel input in the next several years.

CORPORATES
VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED, MOUNT GIBSON IRON LIMITED – ASX MGX

Brazilian closures test iron restraint

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Original article by Paul Garvey
The Australian – Page: 27 : 7-Feb-19

UBS analysts are among those to have forecast an iron ore surplus in 2019. However, this is in doubt after a Brazilian court ordered Vale to put production at its Brucutu iron ore mine on hold in the wake of the tailings dam disaster at its Feijao mine. Vale has responded by declaring force majeure over its iron ore shipments. Vivek Dhar of the Commonwealth Bank says the iron ore price could potentially rise above $US100 per tonne following the production halt at Brucutu, whose annual output is 30 million tonnes.

CORPORATES
VALE SA, UBS HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Rio, Vale boost output and market share

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 16 : 18-Jul-18

Rio Tinto’s iron ore shipments from the Pilbara totalled 168.8 million tonnes in the first half of 2018, which is 9.4 per cent higher than previously. Rio Tinto has advised that its export volumes will be similar in the second half, and shipments for the calendar year are expected to be at the higher end of its guidance of between 330 million and 340 million tonnes. Brazilian rival Vale has reported production of 96.8 million tonnes and sales of 86.5 million tonnes of iron ore for the June quarter. It will increase production by 18 per cent in the second half, and it will target full-year output of around 390 million tonnes.

CORPORATES
RIO TINTO LIMITED – ASX RIO, VALE SA, BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, CLEVELAND-CLIFFS INCORPORATED, ATLAS IRON LIMITED – ASX AGO, FORTESCUE METALS GROUP LIMITED – ASX FMG